OPM 311 Ch6: Manufacturing and Service Processes
The essential issue in satisfying customers in the make-to-stock environment is to balance the level of finished inventory against the level of service to the customer.
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You are in a line at the bank drive-through and 9 cars are in front of you. You estimate that the clerk is taking about two minutes per car to serve. How long do you expect to wait in line?
18min Wait time = 9 cars × 2 minutes per car = 18 minutes
A process map shows the physical location of the various processes within a supply chain.
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Little's law states that supply chain processes can be regarded as unrelated and thus treated and analyzed separately.
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Process selection refers to the strategic decision of choosing the volume of output to produce in a manufacturing facility depending upon the way that facility produces.
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The time needed to respond to a customer's order is called the customer response time.
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A high-level map or diagram of a supply chain process can be useful to understand how material flows and where inventory is held.
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A project layout is characterized by a high degree of task ordering.
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An example of an assemble-to-order firm is Dell Computer.
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Engineer-to-order firms will work with the customer to design the product, and then make it from purchased materials, parts, and components.
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In designing a production layout a flexible line layout might have the shape of a "U".
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Little's law can be thought of as a relationship between units and time.
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One methodology used to evaluate equipment investment decisions where the investment entails an initial investment, fixed costs, and variable costs is Break-Even Analysis.
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The focus in the make-to-stock environment is on providing finished goods where and when the customers want them.
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